Vietnam is rapidly increasing rice imports as global prices hit a low point, making October’s import bill nearly 3.3 times higher than last year’s.

Preliminary statistics from the General Department of Customs show that in October, Vietnam exported 0.8 million tons of rice, generating $505 million. This represents a 29% increase in volume and a 27.2% increase in value compared to October of the previous year.

In the first 10 months of 2024, Vietnam exported nearly 7.8 million tons of rice, valued at approximately $4.86 billion – an all-time record. Export volumes increased by 10.2%, while value rose by 23.4% year-over-year.

However, rice imports into Vietnam have also surged. Over the same 10-month period, Vietnamese businesses spent nearly $1.2 billion on rice imports, up 72.9% from the previous year.

Notably, in October 2024, the value of rice imports jumped to $148 million, a 225% increase, equating to nearly 3.3 times the amount imported in October 2023.

According to experts from the Vietnam Food Association (VFA), there is rising domestic demand for low-grade rice. As Vietnam pursues a restructuring program to expand high-quality rice cultivation, sourcing inexpensive rice from abroad has become a practical solution.

Most imported rice consists of low-cost broken rice from India, used primarily for making rice-based foods, snacks, and animal feed. Vietnamese companies are also importing rice from Cambodia, Myanmar, and Pakistan at prices lower than domestic rice.

A key factor behind this import surge is the global rice price slump, which has hit rock bottom, prompting businesses to take advantage of the favorable prices.

VFA data reveals that as of the October 30 trading session, the price of Vietnamese 5% broken rice stood at $524 per ton, while similar rice from Thailand and Pakistan had dropped to $486 and $461 per ton, respectively.

Of particular note, Indian 5% broken rice prices plunged to $444 per ton following the removal of India’s export floor price.

Currently, the price of 5% broken rice from the world’s four leading exporters—India, Thailand, Vietnam, and Pakistan—has hit a one-year low.

Meanwhile, 25% and 100% broken rice from Thailand, India, and Pakistan also saw steep declines, priced $6 to $72 per ton lower than the equivalent Vietnamese rice.

Tam An

Published Date: November 5, 2024